Google's (NASDAQ:GOOGL) ambitious health startup is teaming up with biotechnology drugmaker AbbVie (NYSE:ABBV) in a $500 million joint venture that will try to develop new ways to treat cancer and other diseases such as Alzheimer's.
The alliance announced Wednesday calls for Google Inc. and AbbVie Inc. to each invest $250 million in the project. They will split all expenses and any profits generated by the venture.
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Calico, a company created by Google last year, will manage a team of scientists who will work at a research-and-development lab in the San Francisco Bay Area. The precise location and size of the new lab hasn't been determined.
AbbVie, a spin-off from Abbott Laboratories, will oversee the marketing of the drugs.
Calico is run by former Genentech CEO Arthur Levinson.